BILL FINAL

Whereas ________ business embodies individualism, achievement, competition, and informality, ________ business stresses collectivism, continuity, cooperation, and formality.

American; Mexican

What term is defined as "a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and communicating the results to interested users"?

Auditing

Commercial and industrial development in the western part of which country has turned interior cities into production centers that compete for labor with coastal factories?

China

Which of the following is NOT included in measuring organizational performance?

Comparing results to competitors' expectations

A well written code of ethics ensures ethical business behavior

False

Bill Gates asserts that organizations have no obligation to do any more for society than is legally required

False

Both Milton Friedman and Ralph Nader agree on the importance of corporate social responsibility

False

Changes in the organization's management, marketing, finance and accounting, production and operations, research and development (R&D), and management information systems (MIS) strengths and weaknesses should all be points of focus of a revised EFE Matrix in strategy evaluation.

False

Conflict is highly unusual in well-run organizations.

False

Determining an appropriate mix of debt and equity in a firm's capital structure is an important strategy-formulation decision.

False

Four common corporate Valuation methods are the Net Worth Method, the Net Income Method, the Gross Income Method, and the Outstanding Shares Method.

False

Good ethics is not a prerequisite for good strategic managemennt

False

Good ethics is not a prerequisite for good strategic management.

False

Horizontal consistency is less important than vertical consistency in developing annual objectives, but it still contributes to improved objectives. True

False

IFRS standards comprise 25,000 pages, whereas GAAP standards comprise 5,000 pages.

False

In contingency planning it is crucial that strategists cover all bases.

False

In order to be considered bribery, the gift offered must be either money or a physical item

False

In publicly held U.S. companies it is becoming increasingly common to combine the positions of chairperson of the board and the CEO.

False

It is possible to obtain insurance from the U.S. government's OPIC to eliminate all risks associated with doing business internationally.

False

JIT significantly increases the costs of implementing strategies.

False

Many New Zealanders, supported by Japanese, are outraged about Australias "large-scale"whaling operations in Antarctic

False

Market penetration can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

False

Mass communication and high technology have led to highly individualized and distinct patterns of consumption in diverse cultures worldwide.

False

Mexican workers expect and desire a work environment in which self-expression and initiative are encouraged.

False

Most firms warn managers and employees that reporting an ethical violation by others, also known as whistle-blowing, could cause them to be discharged.

False

One of the four recommended approaches for determining a firm's worth is to base the analysis on the selling price of a similar company.

False

Policies largely dictate how structure will be established.

False

Recording revenue prematurely understates profits.

False

Reshoring involves companies hiring other companies to take over various parts of their functional operations.

False

Shares authorized are normally less than the number of shares outstanding.

False

Shares outstanding is the same as treasury stock.

False

Social responsibility refers to actions an organization takes that are legally required to protect or enhance the well-being of living things

False

Some strategists agree with Ralph Nader, who asserts that organizations have no obligation to do any more for society than is legally required.

False

Strategies clarify what can and cannot be done in pursuit of an organization's objectives.

False

Strategy evaluation is becoming increasingly easier with the passage of time, given technological advances.

False

Strategy evaluation is essential for developing objectives.

False

Substantial research reveals no relationship between corporate social responsibility and corporate financial performance

False

The U.S. Chamber of Commerce is against the accounting switch from GAAP to IFRS, saying it will cause cross-border commerce to decline.

False

The United States has the highest corporate tax rate among the G-7 nations.

False

The government is held accountable for the entire performance of an organization.

False

The only reasons businesses have for determining their worth is preparing to be sold or to buy other companies.

False

The primary sources of capital are known as debt and EPS.

False

The rational change strategy is one that presents information to convince people of the need for change.

False

The strategic-management process is conceptually different for multinational firms than for purely domestic firms.

False

The trend in the United States is toward larger boards of directors, with an average of 18 members being the norm.

False

To be a price leader or a price follower is a decision that may require finance/accounting policies.

False

Too much debt in the capital structure of an organization can endanger stockholders' returns and jeopardize company survival, particularly in periods of high earnings.

False

While it is socially responsible to be a good steward of the natural environment, doing so will not enable a firm to gain competitive advantage.

False

With the matrix structure it is common for functional resources to be duplicated.

False

Preserving the environment should be a permanent part of doing business for which of the following reasons?

Federal and state environmental regulations are fairly simple and static.

The act of oversight and direction for an organization is referred to as

Governance

A revised ________ should focus on changes in the organization's management, marketing, finance and accounting, production and operations, research and development (R&D), and management information systems (MIS) strengths and weaknesses.

IFE matrix

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method?

Interest expense

Which of the following is NOT true regarding European workers and workplaces?

Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems.

Which two variables rank as marketing's most important contributions to strategic management?

Market segmentation and product positioning

Which of the following statements is NOT true?

Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.

________ involves companies hiring other companies to take over various parts of their functional operations, such as human resources, information systems, payroll, accounting, customer service, and even marketing.

Outsourcing

________ advantage tends to be self-sustaining so long as key external and internal factors that underlie it (them) remain(s) stable.

Positional

Which of the following variables is NOT directly affected by market segmentation?

Process

Which item is included in net worth?

Retained earnings, common stock, and additional paid-in capital

Which of the following statements about contingency plans is NOT true?

Strategists should plan for all possible contingencies

Which of the following is NOT an accepted approach for determining a business's worth?

The Return on Investment Method

Which of the following is NOT true about objectives?

They should use terms like "maximize," "minimize," and "as soon as possible."

A firm's annual objectives can be stated by business segment.

True

A force change strategy is plagued by low commitment and high resistance.

True

A projected financial analysis can be used to forecast the impact of various implementation decisions.

True

According to Alfred Chandler "changes in strategy lead to changes in organizational structure."

True

According to Alvin Toffler, future shock occurs when the nature, type, and speed of changes overpower an individual's or organization's ability and capacity to adapt.

True

According to Friedman's point-pf-view, it is irresponsible for a firm to give monies to charity

True

According to research, participation in strategy-evaluation activities is one of the best ways to overcome resistance to change.

True

An important business activity in Japan is entertaining because it strengthens Wa.

True

Annual objectives are key components in the strategic-management process because they dictate how resources will be allocated.

True

Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch from GAAP to IFRS.

True

Most economists suggests that firms should not engage much, if any, in philanthropy, because simply making a profit is difficult, and shareholders expect a high return on their investment

True

Most large companies have abandoned the functional structure in favor of decentralization.

True

No social need can be met if the firm fails

True

Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals.

True

Potential advantages to initiating, continuing, or expanding international operations is that foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.

True

Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people.

True

Shareholders are increasingly wary of boards of directors.

True

Social responsibility refers to a firm's obligation to care for its employees, customers, communities, and society in which it operates

True

Some strategies take years to implement.

True

Strategists should examine social problems in terms of potential costs and benefits to the firm and focus on social issues that could benefit the firm most

True

Structure dictates how resources will be allocated.

True

Sustainability refers to the extent that an organizations operations and actions protect, mend, and preserve rather than harm or destroy the natural environment

True

Taking corrective actions does not necessarily mean that existing strategies will be abandoned, or even that new strategies must be formulated.

True

The ISO 14000 refers to a series of voluntary standards in the environmental field

True

The ISO is based in Geneva Switzerland

True

The Starbucks Corporation does not have any treasury stock.

True

The act of oversight and direction over management is referred to as corporate governance.

True

The availability, depth, and reliability of economic and marketing information in different countries vary extensively.

True

The strategic-management process is more complex for international firms due to more variables and relationships.

True

Time spent with the family and the quality of relationships are more important in some cultures than the personal achievement and accomplishments espoused by the traditional U.S. manager.

True

Too much emphasis on evaluating strategies may be expensive and counterproductive.

True

Two primary sources of capital are debt and equity.

True

Undesirable conduct such as distorting the records can be a result of overemphasis on achieving objectives.

True

Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organizations.

True

When developing an organizational chart, it is not wise to recommend that any executive have a dual title.

True

When employees understand the thinking that went into strategy formulation, and understand their roles, they will be more inclined to accept the work required for strategy implementation.

True

When measuring organizational performance, a comparison should be made between expected results and actual results.

True

Which is NOT a step in performing a projected financial analysis?

Use the revenue account as the plug figure

Many firms use the _______ sustainability report as a benchmark guideline, and model to follow in preparing their own report

Walmart

Marketing managers in Japan see making a sale ________ the selling process.

as the beginning of

Financial ratios are an important tool used to access a firm's financial situation

at one point in time

If a company's ________ ratio skyrockets or plummets versus industry averages, then cash (and other short-term assets) must be managed.

current

The idea that the positioning of one's ________ can enhance their combined effectiveness is familiar to military theorists, chess players, and diplomats.

resources

Business ethics ________, and sustainability issues are interrelated and impact all areas strategic-management model.

social responsibility

Currencies in Africa are

stabilizing

Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies

with both a firms strategists and its managers

A bribe is a gift bestowed to influence a recipient's conduct.

True

Research suggests that which of the following is one of the best ways to overcome individuals' resistance to change in strategy evaluation?

Participation

"All of our locations will be open at least two evenings per week until 8:30 p.m." is an example of a(n)

Policy

Companies such as Walmart are now monitoring not only the prices its vendors offer for products, but also how those products are made in terms of environmental practices, as well as safety and infrastructure soundness

True

Criteria for evaluating strategies should be measurable and easily verifiable.

True

Dividends and taxes cannot be forecasted using the percentage-of-sales method.

True

Dumping banned or flawed products in foreign markets is considered to be an unethical business practice.

True

Four types of resources that can be used to achieve desired objectives are financial, physical, human, and technological.

True

In China, business relations revolve around guanxi, or personal relations.

True

In China, one should eat heartily to demonstrate enjoyment of the food.

True

In Nordic countries Denmark, Sweden, and Finland, about 70 percent of all employees are in unions.

True

In developing an organizational chart, avoid having a particular person reporting to more than one person in the chain of command.

True

In today's global climate, many companies may find it difficult to survive by relying solely on domestic markets.

True

It is always easier to say you are going to do something (strategy formulation) than to actually do it (strategy implementation).

True

Language, culture, and value systems differ among countries, which can create barriers to communication and problems managing people.

True

Many people consider it unethical for a firm to be socially irresponsible

True

Whistle blowing refers to employees reporting unethical behavior that they discover or see in the firm

True

Which of the following nations has the highest corporate tax rate?

United Arab Emirates

In the context of a balance sheet, goodwill represents

a premium paid over the book value for an acquisition

Restructuring is sometimes called

downsizing

What challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources and control pollution?

ecological

The first activity in the strategy-evaluation process is to

examine the underlying bases of a firm's strategy.

According to the text, the first social responsibility of any business is to

make enough profit to cover the costs of the future, because if this is not achieved then no other social responsibility can be met

Workplace romance and sexual harassment are synonymous

False

Going public is not recommended for companies with less than $________ million in sales because the initial costs can be too high for the firm to generate sufficient cash flow to make going public worthwhile.

10

Nearly ________ million sharks are killed every year to cut off (and sell) their fins

100

Exports constitute ________ percent of Singapore's gross domestic product (GDP)

172%

In a Spencer Stuart 2017 survey, women made up ________ percent of new directors appointed at S&P 500 companies.

36

Effective strategy formulation can usually guarantee successful strategy implementation.

False

Financial ratios are rarely used as criteria to evaluate strategies.

False

A conservative rule of thumb is to establish a business' worth as ________ the firm's current annual profit.

5 times

Approximately what percent of the world's population lives in the United States?

5%

With the merger and acquisition boom this decade, S&P 500 firms experienced a ________ percent increase in goodwill.

70

When performing projected financial analysis, the balance sheet should be prepared before the income statement.

False

Circumstances dictate which fixed debt obligations need to be met.

False

Comparing expected results with the actual results is the first activity in the strategy-evaluation process.

False

Which of the following is NOT true concerning the Japanese concept of Wa?

Discussions potentially disruptive to Wa are generally conducted in very formal settings.

Net income divided by number of shares outstanding is

EPS

Which of the following reflects the common "maximizing shareholders' wealth" overarching corporate objective?

EPS

What is the most widely used technique for determining the best combination of debt and stock?

Earnings Per Share/Earnings Before Interest and Taxes Analysis

According to author Alvin Toffler, what occurs when the nature, types, and speed of changes overpower an individual's or organization's ability and capacity to adapt?

Future Shock

Within an organization, who is responsible for providing ethics leadership?

an organizations strategists and managers

Most quantitative criteria are geared to ________ objectives rather than to ________ objectives.

annual; long-term

Well-being programs

are becoming more prevalent as companies realize the benefits to the firm.

A disagreement between two or more parties on one or more issues is called a(n)

conflict

The primary benefit sought from restructuring is

cost reduction

Mass communication and high technology have ________ in diverse cultures worldwide.

created similar patterns of consumption

Communication between domestic headquarters and overseas operations is often made difficult by

cultural differences.

Multinational corporations face unique and diverse risks, which include all of the following EXCEPT

favorable foreign court interpretations of contracts and agreements.

All of the following are examples of offerings at companies to promote a corporate well-being culture EXCEPT

free health insurance for employees who exercise regularly.

Most economists argue that protectionism ________ the world economy because it ________ trade among countries.

harms; inhibits

The percentage of a manager's annual bonus attributable to short-term versus long-term results should vary by

hierarchical level in the organization.

Simply having a code of ethics

is insufficient to guarantee that employees behave in an ethical manner.

Success today

is no guarantee of success tomorrow.

It has become ________, since uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape.

more and more difficult for firms to make "green" claims when their actions are not substantive, comprehensive, or even true

A sustainability report reveals how a firms operation's impact the _____ environment

natural

Conflict in an organization is

not always bad

The U.S. government's OPIC

offers insurance to offset some risks of doing business internationally.

Most organizations can afford to pursue ________ corporate-level strategies at any given time.

only a few

A divisional structure by geographic area is most appropriate when

organizations have similar branch facilities located in widely dispersed areas.

Evaluating the worth of a firm

requires both qualitative and quantitative skills.

For many years, the Omega Company manufactured all of its products in Brazil. In early 2018, the company made the decision to bring back its manufacturing by establishing several large plants in the state of Florida. What the Omega Corporation did is called

reshoring

________ is/are the number of shares a firm has approval to issue in total.

shares authorized

If you discover during the course of strategy evaluation that major changes have occurred in the firm's internal strategic position, you should

take corrective actions

In projected financial statements, what is used as a plug figure?

the cash amount

Glass ceiling refers to

the invisible barrier in many firms that bars women and minorities from top-level management positions.

Americans place an exceptionally high priority on ________ whereas many foreigners place more worth on ________.

time; relationships

Stock that a firm has repurchased is called ________ stock.

treasury

Strengths of competitors in foreign lands are often ________, and weaknesses are often ________.

underestimated; overestimated